The final quarter of 2019 saw strong results for EasyJet. The airline stated the delivery of self-help initiatives, robust customer demand and low levels of competitor capacity drove outperformance in both its passenger and ancillary revenue per seat.
Commenting on the results, EasyJet chief executive Johan Lundgren said: “I’m pleased that we have made a strong start to the year with continued positive momentum.”
“The improvement in our revenue per seat has been driven by our self-help revenue initiatives combined with robust customer demand and a lower capacity growth market.”
Lundgren also noted that the airline’s cost per seat was in line with expectations. This was helped by its operational resilience programme which had improved overall customer satisfaction and enabled easyJet to manage its costs. The airline also launched easyJet holidays successfully. Lundgren said customers of easyJet holidays will benefit from flexibility, great value and handpicked hotels.
Low competitor growth
The airline’s passenger numbers in the quarter increased by 2.8 per cent to 22.2 million. The carrier says this was driven by an increase in capacity of 1.0% to 24.3 million seats. The group’s total revenue for the quarter ending 31 December 2019 increased by 9.9% to £1,425 million.
Some of the reasons stated by easyJet for its total airline revenue per seat increasing 8.8% at constant currency were robust demand, planned low capacity growth and low growth by competitors on easyJet’s markets. The airline also benefited from Thomas Cook going into administration in September 2019 and continues to drive down its cost per seat.
EasyJet uses Aerogility’s multi-agent software to plan hangar slots for heavy maintenance visits. Initially forecasting heavy base maintenance visits by using simulations to predict when aircraft needed to be in the hangar, it recently extended the use of the system to cover landing gear and engine overhauls.
More information on easyJet can be found here.